Year End Review 2023

27-12-2023

Year End Review 2023

Why in the news? 

 Recently, Commerce and Industry Minister Shri Piyush Goyal has released the Year End Review 2023 for the Ministry of Commerce and Industry.

Important points:

• The Government of India notified the constitution of the National Turmeric Board on 4 October 2023. The National Turmeric Board will focus on the development and growth of turmeric and turmeric products in the country.
• Despite global headwinds, both goods and services exports have performed strongly. India's total exports (goods plus services) during April-November 2023 stood at US$ 499.46 billion, as against US$ 506.52 billion during April-November 2022.

Foreign Trade Policy 2023:

• The Foreign Trade Policy 2023 (FTP 2023) was launched on 31 March 2023 by the Union Minister of Commerce and Industry, Shri Piyush Goyal in New Delhi.

Focus of FTP 2023:

The main focus of the policy is based on 4 pillars.

• Incentives for discounts.
• Ease of doing business, reduction in transaction costs and promotion of exports through e-initiatives
• Emerging Sectors – E-commerce, developing districts as export hubs and streamlining SCOMET policy.
  • It focuses on emerging areas such as dual-use high-end technology items, facilitating e-commerce exports, collaboration with states and districts for export promotion under SCOMET.

Features of Foreign Trade Policy 2023 (FTP 2023):

• The new FTP is introducing a one-time waiver scheme for exporters to close old pending authorizations and start afresh.
• FTP 2023 encourages new cities through the “Export Excellence Cities Scheme” and identification of exporters through the “Status Holder Scheme”.
• The initiative for system based automated issuance of 'Status Holder' certificates under FTP 2023 was launched on 9 October 2023.
• Now the exporter will not need to apply to the office of DGFT for a status certificate and export recognition will be provided.
  • The Status Holder Certification Program provides credibility to Indian exporters in international markets.
  • Additionally, it provides certain other privileges under FTP 2023 including simplified procedures and priority custom clearance on self-declaration basis, exemption from mandatory negotiation of documents through banks, exemption from filing bank guarantee for FTP schemes, etc.
• The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry implemented the Advance Authorization Scheme under FTP 2023, which allows duty-free import of inputs for export purposes.
• To make the norm setting process more efficient, DGFT has created a user-friendly and searchable database of ad-hoc norms decided over the years.
  • These criteria can be used by any exporter without the need for review by the Criteria Committee mentioned in FTP 2023.

G-20:

• The G20 Trade and Investment Ministerial Meeting (TIMM) was held in Jaipur on August 24 and 25, 2023.
• The meeting was led by the Union Minister of Commerce and Industry.
• Under India's chairmanship, the G20 Trade and Investment Ministerial Meeting reached an unprecedented consensus on five concrete and action-oriented deliverables, which have been adopted in the outcome document.
  • The first of these is the adoption of high-level principles on the digitization of trade documents in which G20 Ministers have set out 10 broad principles that broadly cover various dimensions of the effective transition to paperless trade.
  • These principles will provide guidance to countries in implementing measures related to cross-border exchange of data and documents related to electronic trade and also emphasize the need for a secure, interoperable and transparent paperless cross-border trade environment.

• Jaipur Call for Action: G20 Ministers also issued the Jaipur Call for Action to increase access to information for MSMEs.
• Global Trade Helpdesk: Ministers called on the International Trade Center (ITC), Geneva to work on a detailed implementation plan in consultation with UNCTAD and WTO for upgrading the ITC's Global Trade Helpdesk to address Will remove the information gaps faced by MSMEs.
• G20 Generic Mapping Framework: Ministers also endorsed the G20 Generic Mapping Framework for Global Value Chains (GVCs) covering the key building blocks of data, analysis and representation of GVC data
• G20 Standards Dialogue: G20 Ministers welcomed the Presidency's suggestion to convene a G20 Standards Dialogue in 2023 that will also bring together members, policy makers, regulators, standard-setting bodies and other stakeholders, to develop common principles such as good regulatory practices and standards. Topics of interest can be discussed.

Bharat Mandapam:

• Prime Minister Shri Narendra Modi dedicated to the nation the International Exhibition-cum-Convention Center (IECC) Complex at Pragati Maidan, New Delhi on 26 July 2023.
  • The Prime Minister also urged the nation to move forward with the principle of 'think big, dream big, act big'.
• This complex has been named 'Bharat Mandapam'.
• The Prime Minister also unveiled the G-20 Coin and G-20 Stamp at the grand opening ceremony.
• Developed as a national project at a cost of approximately Rs 2700 crore, the new convention complex will help showcase and promote India as a global business destination.

India-US bilateral cooperation:

• India and the United States held the 13th Ministerial-level meeting of the India-United States Trade Policy Forum (TPF) on 11 January 2023 in Washington, DC.
• The meeting was co-chaired by the Union Commerce and Industry Minister and the US Trade Representative Ambassador.
• The Ministers launched a new Working Group on "Resilient Trade" to deepen bilateral dialogue on a range of issues.
  • It can enhance the resilience and stability of trade relationships by strengthening the resilience of global supply chains, especially in critical sectors.
• Several rounds of meetings were held this year to resolve all the seven ongoing disputes at the World Trade Organization (WTO) between India and the US.
  • Six disputes were resolved during the visit of the Prime Minister to the United States in June 2023 and the final dispute was resolved during the visit of the President of the United States to the G20 Summit in September 2023.

• The India-US Commercial Dialogue meeting held in New Delhi on March 10, 2023 was co-chaired by the Union Minister of Commerce and Industry and the US Commerce Secretary.
  • One of the key outcomes was MoU on Establishing Semiconductor Supply Chain and Innovation Partnership to facilitate a collaborative mechanism between the two governments on semiconductor supply chain resilience and diversification in view of the US Chips and Science Act and India's Semiconductor Mission. (MoU) was to be signed.

• An MoU to “Enhance Innovation Ecosystem through Innovation Handshake” was signed between the two countries on 14 November 2023 in San Francisco to further strengthen the start-up ecosystem of both the countries.
• The establishment of the “Innovation Handshake” was announced in the leaders' joint statement during the Prime Minister's historic official state visit in June 2023.

India-United Arab Emirates bilateral cooperation:

• India and UAE held the first meeting of the India-UAE CEPA Joint Committee in New Delhi from 11 to 12 June 2023.
• During this Committee, both sides, inter alia, reviewed bilateral trade under CEPA, agreed to operationalize the Committees/Sub-Committees/Technical Council established under CEPA, on a quarterly basis for effective monitoring. Reciprocal exchange of preferential trade data was agreed.
• CEPA discussed various matters related to the implementation of the agreement and agreed to address any issues that could potentially hinder CEPA implementation or its use by businesses on both sides, by setting up a new sub-committee on trade. Construction was agreed upon.
• It was also agreed to establish the UAE-India CEPA Council (UICC) as a B2B cooperation mechanism, with a focus on MSMEs and start-ups, to build further economic ties in services and optimize CEPA benefits.
• The 11th meeting of the UAE-India High-level Joint Task Force on Investment ('Joint Task Force') was held in Abu Dhabi on 5 October.
• It was co-chaired by His Highness Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority (ADIA) and Union Minister of Commerce and Industry.
  • A Joint Task Force was established in 2013 to promote trade, investment and economic relations between India and the UAE.
  • It has provided an effective mechanism to discuss investment opportunities and prospects in both the countries as well as address the issues faced by investors from both the countries.

India-Africa bilateral cooperation:

• The 18th CII - EXIM Bank Conclave on 'India-Africa Development Partnership' was addressed by the Union Commerce and Industry Minister in New Delhi on 15 June 2023.

Indo-Pacific Economic Framework for Prosperity (IPEF):

• The Union Minister of Commerce and Industry participated in the 3rd in-person IPEF Ministerial Meeting in San Francisco, California on November 14, 2023.
• During this ministerial meeting, the Minister signed the first of its kind IPEF Supply Chain Resilience Agreement with Ministers from other IPEF partner countries.
• This agreement is expected to make IPEF supply chains more resilient, stronger and well-integrated and contribute to the economic growth and progress of the region as a whole.

20th ASEAN-India Economic Ministers' Meeting:

• The 20th ASEAN-India Economic Ministers' Meeting was held on 21 August 2023 in Semarang, Indonesia.
  • Along with the economic ministers of all 10 ASEAN countries or their representatives.
  • Countries like Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam participated in this meeting.
• The main agenda of this year's meeting was to timely review the ASEAN-India Goods Trade Agreement (AITIGA) which was signed in 2009.

India-European Union (EU) Free Trade Agreement:

• India-European Union (EU) Free Trade Agreement (FTA) negotiations were formally restarted on 17 June 2022 following the India-EU Leaders' Announcement in Porto on 8 May 2021.
• This dialogue covers 23 policy areas/chapters.
• India-UK FTA negotiations were scheduled to begin on January 13, 2022.
• The thirteenth round of negotiations for a UK-India free trade agreement (FTA) took place from 18 September to 15 December, 2023.
• The fourteenth round of India-UK FTA talks will be held in January 2024.

India-Australia Comprehensive Economic Cooperation Agreement (CECA):

• It builds on the foundation laid by the India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into force from December 29, 2022.
• Negotiations on CECA begin in February 2023.
• The 7th round of CECA negotiations was held in hybrid mode from 4 to 20 October 2023, where significant progress has been made in the Rules of Origin (ROO) track with agreements on 4699 lines (84%).
• Intersessional meetings were held on Digital Trade, Government Procurement, ROO, Legal and Institutional and Environment tracks in November, 2023.

CECA envisages a comprehensive agreement, including:

• India-Australia agreed on 5 tracks as per Article 14.5 of Chapter 14 of ECTA, namely Goods, Services, Digital Trade, Government Procurement, Rules of Origin-PSR – under formal negotiations;
• New areas in which either party has shown interest to be included in CECA such as competition policy, MSME, gender, innovation, agro-technology, critical minerals, sports-exploratory discussions.

India-Sri Lanka Economic and Technological Cooperation Agreement:

• Negotiations on the India-Sri Lanka Economic and Technological Cooperation Agreement (ECTA) continue with the 12th round of talks held in Colombo from 30 October to 1 November 2023.
• The two sides discussed a number of important areas including trade in goods, technical barriers to trade and trade in services.
• Both India and Sri Lanka sides also agreed to continue discussions on matters including apparel quota and pharmaceutical procurement.

India-Peru Trade Agreement:

• A special round of negotiations for the India-Peru trade agreement was held virtually from October 10 to 11, 2023.
• The talks discussed various chapters including preliminary provisions and common definitions, rules of origin, trade in goods, customs procedures and trade facilitation.
•  During this special round, work was done on technical barriers to trade, sanitary and phytosanitary measures, general and safeguard exceptions, cooperation and legal and institutional issues/dispute settlement.
• The special round for chapters on services and movement of natural persons was held on 21 November 2023.

Policies regarding import/export:

• Revised rules for calculation of composition duty for extending export obligation under the Advance Authorization Scheme by amending para 4.42 of the Handbook of Procedures (2015-20) vide Public Notice No. 52/2015-20 dated 18 January 2023. Notified.
• DGFT vide Notification No. 14 dated June 23, 2023 has simplified and liberalized the policy for export of drones/UAVs for civil use from India.
  • All types of drones/UAVs were earlier controlled/restricted for export under this category.
  • 5B of the SCOMET (Special Chemicals Biological Materials Equipment and Technology) list under Appendix 3 of Schedule 2 of the ITCHS Classification of Import and Export Goods which belongs to the category of goods that are subject to specific rules due to their potential dual use .

• Scheme of Remission of Duties and Taxes on Exported Products (RoDTEP) support which was notified till 30 September 2023, has now been extended till 30 June 2024 at the same rates for existing export goods.
  • The scheme is WTO compatible and is being implemented in an end-to-end IT environment. The scheme provides a mechanism for reimbursement of taxes, duties and levies.

Government e-Market (GeM):

• An event organized by Government eMarketplace (GeM) in partnership with Self-Employed Women's Association, India (SEWA India) to celebrate the success of "Womenia on Government eMarketplace (GeM)" on 14th January 2023 in New Delhi I went.
• The “Womaniya” initiative seeks to encourage participation of women entrepreneurs and Self Help Groups (SHGs) from the informal sector on the GeM portal and facilitate the sale of their products directly to various government buyers without middlemen.
• GeM organized 'Buyer-Seller Gaurav Samman Samaroh 2023' on 26 June 2023 to recognize the excellent performance of government buyers and sellers in the public procurement process through GeM.
• GeM will be organized in all 75 districts of Uttar Pradesh from 12 June 2023 to 31 August 2023 to enhance the understanding of the functioning of GeM among buyers and sellers in the state as well as provide a platform to address any of their queries or concerns. Organized buyer-seller workshops in.

Agricultural and Processed Food Products Export Development Authority:

• Agricultural and Food Processed Products Export Development Authority (APEDA) signed a Memorandum of Understanding (MoU) with Lulu Hypermarket LLC on 21 February 2023 to harness the export potential of millets in the Gulf Cooperation Countries (GCC).
• The manufacturer will send various samples of millet products to Lulu Hypermarket, which will be displayed at its various stores.
• APEDA organized the Global Millets (Shri Anna) Conclave on 18th March 2023 in New Delhi to encourage export of millets from India and provide market linkages to the producers.

                                                                          Source:PIB